---
id: department-0026
title: "What happens to my car loan when I trade in my vehicle?"
category: department
subtopic: trade-in
page_type: department
source_url: "https://www.castlechevymchenry.com"
tags: ["trade-in", "financing", "used-vehicle"]
questions:
  - "Can I trade in a car I still owe money on?"
  - "What if my loan payoff is more than the trade-in value?"
  - "How does negative equity work when trading in?"
  - "Can Castle Chevrolet McHenry pay off my existing loan?"
related: [finance-overview, used-shopping]
dealer: Castle Chevrolet McHenry
---

Yes, you can absolutely trade in a vehicle with an outstanding loan. Here's how it works: Castle Chevrolet McHenry will work with your existing lender to pay off what you owe as part of the trade-in process. The trade-in value of your vehicle is applied to reduce the amount you need to finance for your new car.

**If you owe more than the trade-in value:** This is called negative equity. The difference can typically be rolled into your new loan, though our finance team will review your specific situation and discuss options with you.

**The simple process:** Bring your vehicle to us, we appraise it, handle the payoff with your current lender, and credit the value toward your purchase. It's one of the simplest ways to upgrade.

To get an estimate and discuss your exact loan payoff, call **(779) 600-2956** or visit us at 1107 State Route 31 in McHenry. Our finance team will make sure the transition is smooth.